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Your guide to the employment landscape, working customs and local labor laws in Romania.
Capital
Bucharest
Currency
Romanian Leu (RON)
Languages
Romanian
GDP per Capita
$12,279.57
Employer Tax
6.25% to 10.25%
Payroll Frequency
Monthly
Romania is the twelfth-largest country in Europe and is well-known for the forested region of Transylvania, which is ringed by the Carpathian Mountains. The country has a freedom score of 67.1, making it the 47th freest country in 2022. The main GDP contributors in Romania are the services and the tourism industry.
Major economic hubs:
Bucharest, Cluj, Timisoara, Iasi, and Constanta
Skills in demand:
Local: 1
World : 847
Local: 2
World : 974
Local: 3
World : 1102
Local: 4
World : 1238
Local: 5
World : 1337
The salary data of Romania for some of the common jobs are mentioned below;
Job Title | Average Monthly Salary (RON) | Average Monthly Salary (USD) |
Financial Manager | 17,100 RON | 3752 USD |
General Manager | 15,000 RON | 3291 USD |
Business Development Manager | 13,300 RON | 2918 USD |
Financial Analyst | 10,700 RON | 2348 USD |
Business Analyst | 10,400 RON | 2282 USD |
Project Manager | 9,450 RON | 2073 USD |
Before onboarding an individual, It is important to know about the employment laws, benefits, social security, deductions, and allowances in Romania by the employer.
According to Romanian Labor Law, the employment contract can be provided in Romanian or English, or any other language that is easily understood by the employee and employer.
The probation period in Romania is 90 days.
Date | Holiday | Type |
1 Jan | New Year’s Day | National Holiday |
2 Jan | New Year Holiday | National Holiday |
6 Jan | Epiphany | National Holiday |
7 Jan | Synaxis of St. John the Baptist | National Holiday |
24 Jan | Union of the Romanian Principalities | National Holiday |
1 May | Labor Day | National Holiday |
3 May | Orthodox Good Friday | National Holiday |
5 May | Orthodox Easter Sunday | National Holiday |
6 May | Orthodox Easter Monday | National Holiday |
1 Jun | Children’s Day | National Holiday |
23 Jun | Orthodox Whit Sunday | National Holiday |
24 Jun | Orthodox Whit Monday | National Holiday |
15 Aug | Assumption Day | National Holiday |
30 Nov | Feast of Saint Andrew | National Holiday |
1 Dec | Great Union Day | National Holiday |
25 Dec | Christmas Day | National Holiday |
26 Dec | 2nd Day of Christmas | National Holiday |
Type of Leave | Time Period | Mandatory |
Annual/Earned Leave | 20 days | Yes |
Sick Leave | 5 days | Yes |
Maternity Leave | 119 days | Yes |
Leave Compliance
Payroll cycle
The payroll cycle is monthly in Romania.
Overtime pay
In Romania, overtime is basically compensated by providing the employee on working days with leaves for the overtime hours worked. If not, the employer must provide 75% of the base salary.
Fund | Contribution |
Pension | 4% or 8% based on working condition |
Unemployed Insurance | 2.25% |
Fund | Contribution |
Pension | 25% |
Health Insurance | 10% |
A flat rate of 10% is the Employer Personal Income Tax.
In Romania, the standard rate of VAT is 19%.
There is no statutory law for 13-month pay in Romania.
According to Romanian Law, both parties can terminate the contract based on mutual consent or by notice. However, the employer can terminate the contract only based on objective dismissal grounds or economic dismissal grounds.
The notice period in Romania is 30 days.
In Romania, there is no statutory law for severance pay.
An individual can be given a visa if they are a member of the supervisory or member of the board in Romanian companies. However, if the individual is from an EU country, only a work permit is required. The work permit is valid for one year for normal employees and two years for highly skilled employees.
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